Allocation Rule

An Allocation Rule is the defined specification of how costs flow within a cost model: from which sending object they originate, which recipients they reach, which key is applied and in which order the distribution takes place. Rules thus turn cost distribution into a defined, repeatable procedure.

Its components include the source (such as a cost pool or tower), the target (such as services or cost centers), the Allocation Key used, weightings where applicable and a validity period. In multi-level models, rules interlock: pools are first distributed to towers, which are then distributed to services and recipients. Central requirements are reproducibility and auditability: the same input data must lead to the same result, and every charge must be traceable to its source.

Documented allocation rules make the cost model verifiable and explainable. They are thus the basis for the acceptance of the derived rates, reports and internal charges.